At least $1 billion of customer funds have vanished from collapsed crypto exchange FTX, according to two people familiar with the matter.

The exchange’s founder Sam Bankman-Fried secretly transferred $10 billion of customer funds from FTX to Bankman-Fried’s trading company Alameda Research, the people told Reuters.

A large portion of that total has since disappeared, they said. One source put the missing amount at about $1.7 billion. The other said the gap was between $1 billion and $2 billion.

Bahamas-based FTX filed for bankruptcy on Friday after a rush of customer withdrawals earlier this week. A rescue deal with rival exchange Binance fell through, precipitating crypto’s highest-profile collapse in recent years.

The U.S. Securities and Exchange Commission is investigating’s handling of customer funds, as well its crypto-lending activities, a source with knowledge of the inquiry told Reuters on Wednesday. The Department of Justice and the Commodity Futures Trading Commission are also investigating, the source said.


Free legal advice

In line with bankruptcy laws, FTX’s remaining assets will be used to cover creditors and investors. In cases like this, it is common practice that big creditors and lenders will have their claims submitted and discussed first. Small investors’ are usually not represented through an attorney, and the appointed commission will decide on their claims. You will increase your chances of getting your money back if you submit your claim as quickly as possible and band together in a class action to seek compensation.